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May 21, 2021
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Palo Alto Networks (PANW, $342.68) beats fiscal Q3 earnings estimates; boosts full-year outlook

Palo Alto Networks (PANW, $342.68) beats fiscal Q3 earnings estimates; boosts full-year outlook

Palo Alto Networks, Inc.  posted earnings that surpassed analysts’ expectations. The cybersecurity company also boosted its guidance for the year. 

The company’s fiscal third-quarter non-GAAP earnings came in $1.39 per share, compared to the $1.29 a share expected by analysts polled by FactSet.  Earnings were $1.17 a share in the year-ago quarter.

Revenue of $1.1 billion was in line with analysts’ expectations. The company generated revenue of $869.4 million in the year-ago quarter.

Palo Alto Networks is expecting fiscal fourth-quarter revenue in the range of $1.165 billion to $1.175 billion and diluted non-GAAP net income per share of $1.42 to $1.44. Analysts had expected $1.41 a share on revenue of $1.16 billion. The company expects billings of $1.7 billion to $1.72 billion, while analysts had predicted $1.62 billion.

For the full fiscal year, the company raised its outlook on revenue to $4.2 billion to $4.21 billion and diluted non-GAAP net income per share of $5.97 to $5.99. Analysts expect $5.86 a share on revenue of $4.18 billion. The company also projects billings of $5.28 billion to $5.30 billion, while analysts forecast $5.16 billion.

 

 

Related Ticker: PANW

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


PANW's RSI Oscillator peaks and leaves overbought zone

The 10-day RSI Indicator for PANW moved out of overbought territory on October 07, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 instances where the indicator moved out of the overbought zone. In 29 of the 41 cases the stock moved lower in the days that followed. This puts the odds of a move down at 71%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Moving Average Convergence Divergence Histogram (MACD) for PANW turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 31 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.

PANW moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for PANW crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where PANW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.

Bullish Trend Analysis

The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.

The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on PANW as a result. In 54 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.

Following a +5.56% 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in 276 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.

PANW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In 207 of 270 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 77%.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. PANW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.420) is normal, around the industry mean (16.526). PANW has a moderately high P/E Ratio (854.146) as compared to the industry average of (57.809). Projected Growth (PEG Ratio) (2.002) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.287) among similar stocks. P/S Ratio (25.000) is also within normal values, averaging (103.889).

Notable companies

The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Palo Alto Networks Inc (NASDAQ:PANW), Crowdstrike Holdings Inc (NASDAQ:CRWD), Block Inc (NYSE:XYZ), NetApp (NASDAQ:NTAP), Zscaler (NASDAQ:ZS), Okta (NASDAQ:OKTA), Twilio (NYSE:TWLO), MongoDB (NASDAQ:MDB).

Industry description

Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.

Market Cap

The average market capitalization across the Computer Communications Industry is 34.93B. The market cap for tickers in the group ranges from 48.8K to 3.87T. MSFT holds the highest valuation in this group at 3.87T. The lowest valued company is WMHI at 48.8K.

High and low price notable news

The average weekly price growth across all stocks in the Computer Communications Industry was -6%. For the same Industry, the average monthly price growth was -12%, and the average quarterly price growth was -6%. CHOW experienced the highest price growth at 94%, while RZAI experienced the biggest fall at -62%.

Volume

The average weekly volume growth across all stocks in the Computer Communications Industry was 20%. For the same stocks of the Industry, the average monthly volume growth was 63% and the average quarterly volume growth was -47%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 51
Price Growth Rating: 63
SMR Rating: 78
Profit Risk Rating: 91
Seasonality Score: 12 (-100 ... +100)
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General Information

a provider of network security solutions

Industry ComputerCommunications

Industry
Computer Communications
Address
3000 Tannery Way
Phone
+1 408 753-4000
Employees
21921
Web
https://www.paloaltonetworks.com
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